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Greece's Piraeus Bank Sees Improved Third-Quarter Profit

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November 15, 2016

By Stelios Bouras

ATHENS--Greece's largest lender Piraeus Bank SA (TPEIR.AT) Tuesday reported an improving profit figure of 31 million euros ($26.7 million) for the third quarter of the year on lower loan loss provisions.

The figure compares with a EUR20 million profit in the second quarter as Piraeus Bank set aside less money for bad loans amid improving conditions in the Greek economy.

The bank, who kicks off the third-quarter reporting season for Greece's top lenders, said loan impairment charges fell to EUR242 million from EUR265 million in the previous quarter.

"Active management of non-performing loans continues to yield significant positive results, with a further reduction of loans in arrears above 90 days by EUR0.6 billion on a quarterly basis," said deputy chief executive George Poulopoulos.

Greek banks have been struggling to get a grip on bad loans amounting to some EUR110 billion, or about 60% of the country's annual economic output, caused by the country's seven-year economic slump.

The Greek government and banking regulators are expected to move ahead with a series of initiatives in coming months to help banks manage bad debts such as introducing new out of court settlement procedures and allowing third parties to co-manage problem loans.

Deposits rose by nearly EUR1 billion in the last three months following the partial relaxation of capital controls, the bank added.